A Given Project Requires a $28,500 Investment and Is Expected

question 129

Multiple Choice

A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below.
$$\begin{array} { c c c } \begin{array} { c } \mathrm { i } = 10 \% \\\mathrm { n } = 1\end{array} & \begin{array} { c } \mathrm { i } = 10 \% \\\mathrm { n } = 2\end{array} & \begin{array} { c } \mathrm { i } = 10 \% \\\mathrm { n } = 3\end{array} \\\hline .9091 & .8264 & .7513\end{array}$$

• A) $0.00
• B) $2,668.00
• C) ($7,461.00)
• D) $1,341.60
• E) $29,841.60

---

Definitions:

Hard Numbers

refer to quantitative data or statistics that are concrete and verifiable, often used to support arguments or analysis.

Soft Benefits

Intangible advantages or perks associated with a job, product, or service that may improve satisfaction or wellbeing but are not quantifiable in financial terms.

Return Metrics

Refers to the analysis and measurement of the effectiveness of investments or actions, typically used in marketing and financial contexts to evaluate performance.

Social Media Strategy

The planning and execution of actions on social media platforms to achieve specific marketing or business goals, tailored to the target audience's preferences and behaviors.